Date:22/06/2005 URL: http://www.thehindubusinessline.com/2005/06/22/stories/2005062203230300.htm

Back Airbus urges IA to speed up purchase decision

Our Bureau

New Delhi , June 21

INDIAN Airlines could see a delay in the delivery of the Airbus aircraft that it plans to acquire unless a firm decision is taken on the order soon, senior Airbus officials said here on Tuesday.

Emphasising that the manufacturer was not threatening the airline, Airbus officials said that, "It takes about 12-15 months for the entire specifications that have been ordered by an airline to get ready. If the airline is planning to acquire the aircraft in September 2006, then we should know about what specifications they want soon," said the company's Vice-President, Sales, Mr Nigel Howard. The company, however, was "hopeful" that they would be given the full approval in the next few weeks.

Mr Howard replied in the negative when asked whether there was scope for renegotiation of prices. ``There is no room for further price negotiations,'' he said.

The IA board had cleared the $2-billion deal for 43-Airbus aircraft in March 2002. The proposal had got the nod from the Public Investment Board (PIB) late last year. However, the airline has not yet got the clearance from the Cabinet Committee on Economic Affairs to go ahead and sign the deal.

Meanwhile, Airbus sought to play down the issues that had been raised when Air India decided to acquire Boeing aircraft recently. "What has happened has happened. We are now focussing on the future," a senior Airbus official said, when asked for his response to the Air India deal. Airbus Industrie had complained about the manner in which the fleet acquisition programme was conducted by AI.

Despite the tardy progress at IA and having lost the AI bid, Airbus has seen several private sector domestic airlines, including Jet Airways, Kingfisher Airlines, and the soon to be launched IndiGo airline, placing orders with it at the recently concluded Paris air show.